On behalf of Kadish & Associates Law Group posted in Estate Planning For Business Owners on Friday, March 22, 2019.
Business owners have a lot to think about when it comes to the financial state of their company. One thing that they might not consider is who is going to make their financial decisions for them if they can’t do it themselves. This is important since it can mean the difference between the family thriving, as well as whether the business continues on.
For some small business owners, the finances of the business are tied up in their own accounts. This puts both at risk since they are together. Some of these entrepreneurs choose to set up a durable financial power of attorney so that someone else can manage their financial affairs if that person is unable to do so due to being incapacitated.
The person you designate should be financially responsible because their actions can impact you if you recover from your problems. They have to act in your best interests, so they can’t make decisions based on what they want or what’s best for them.
Some of the responsibilities that they will do include buying insurance, paying bills, accessing any financial account, hiring people for you, selling or transferring assets, initiating investments and handling real estate matters. They will also be responsible for paying medical bills on your behalf.
Make sure that you clearly outline any decisions you feel should be made in a certain manner. This includes any regarding the business that they might need to make. Listing these might be beneficial so that there is something tangible for them to review. This should be included in your estate plan.